Pictured here is a shopping mall in Hangzhou, China, on September 9, 2024.
Nurphoto | Nurphoto | Getty Images
BEIJING — China's retail sales, industrial production and urban investment all grew more slowly than expected in August, according to data from the National Bureau of Statistics released Saturday.
Retail sales rose 2.1 percent in August from a year earlier, falling short of expectations of 2.5 percent growth by economists polled by Reuters. It was also slower than the 2.7 percent increase in July.
According to CNBC's calculations based on official data, online sales of physical goods rose by almost 1 percent in August compared to the previous year.
Industrial production rose 4.5 percent in August from a year earlier, falling short of Reuters' 4.8 percent growth forecast and slowing from July's 5.1 percent increase.
Despite this failure, industrial production still grew faster than retail sales. “This reflects the structural imbalance in China's economy, which is characterized by stronger supply and weaker demand,” said Darius Tang, associate director for corporate bonds at Fitch Bohua.
The company expects the Chinese government to likely announce further, gradual stimulus measures in the fourth quarter to support consumption and the real estate sector, Tang said.
Investments in fixed assets rose by 3.4 percent in the period from January to August, below the forecast of 3.5 percent growth.
The urban unemployment rate was 5.3% in August, up from 5.2% in July.
Investment in fixed assets slowed in August compared with July on an annual basis, particularly in infrastructure and manufacturing. Investment in real estate fell by 10.2% in the year to August, the same pace of decline as in July.
National Bureau of Statistics spokeswoman Liu Aihua attributed the rise in unemployment to the impact of the graduation season, but said stabilizing employment still requires more work.
This year, the Statistics Office published the unemployment rate for people aged 16 to 24 who are not in school a few days after the general unemployment figures were released. The youth unemployment rate was 17.1% in July.
“We should be aware that the negative impact of changes in the external environment is increasing,” the office said in an English-language statement. “A sustainable economic recovery still faces numerous difficulties and challenges.”
This weekend, Saturday is a working day in China, while Monday is a holiday. The country celebrates the Mid-Autumn Festival, also known as the Moon Cake Festival, from Sunday to Tuesday. The next and final major holiday in China falls in early October this year.
Growth in the world's second-largest economy has slowed after a disappointing recovery from Covid-19 lockdowns. Policymakers have not yet announced large-scale stimulus measures but acknowledge that domestic demand is insufficient.
Other data released last week underlined the continued weakness in consumption.
According to customs data, imports rose by just 0.5 percent in August compared to a year earlier, falling short of expectations. Exports rose by 8.7 percent, exceeding expectations.
Beijing's consumer price index for August also disappointed analysts' expectations, rising 0.6 percent year-on-year, above the previous year's level.